Loan Calculator
Calculate monthly / yearly payments and total interest.
Yearly Amortisation
| Year | Interest | Principal | Balance |
|---|---|---|---|
| Year 1 | 10,858.98 | 5,650.32 | 194,349.68 |
| Year 2 | 10,540.25 | 5,969.04 | 188,380.64 |
| Year 3 | 10,203.55 | 6,305.74 | 182,074.90 |
| Year 4 | 9,847.86 | 6,661.44 | 175,413.46 |
| Year 5 | 9,472.10 | 7,037.19 | 168,376.27 |
| Year 6 | 9,075.15 | 7,434.15 | 160,942.12 |
| Year 7 | 8,655.80 | 7,853.49 | 153,088.63 |
| Year 8 | 8,212.81 | 8,296.49 | 144,792.14 |
| Year 9 | 7,744.82 | 8,764.48 | 136,027.66 |
| Year 10 | 7,250.43 | 9,258.86 | 126,768.80 |
| Year 11 | 6,728.16 | 9,781.13 | 116,987.67 |
| Year 12 | 6,176.43 | 10,332.87 | 106,654.80 |
| Year 13 | 5,593.57 | 10,915.72 | 95,739.08 |
| Year 14 | 4,977.84 | 11,531.45 | 84,207.62 |
| Year 15 | 4,327.38 | 12,181.92 | 72,025.70 |
| Year 16 | 3,640.22 | 12,869.08 | 59,156.63 |
| Year 17 | 2,914.30 | 13,594.99 | 45,561.63 |
| Year 18 | 2,147.44 | 14,361.86 | 31,199.78 |
| Year 19 | 1,337.32 | 15,171.98 | 16,027.80 |
| Year 20 | 481.50 | 16,027.80 | 0.00 |
What is a loan amortization calculator?
A loan amortization calculator computes your monthly payment, total interest cost, and generates a payment schedule showing how each payment is split between principal and interest over the life of the loan. Amortization means spreading the repayment evenly across fixed monthly installments.
The standard amortization formula determines a fixed monthly payment that fully repays the loan by the end of the term. Early in the loan, most of each payment goes toward interest. As the principal balance decreases, the interest portion shrinks and more of each payment goes toward principal. This shifting ratio is clearly visible in the amortization table.
How loan payments are calculated
The monthly payment formula is: M = P multiplied by [r(1+r)^n] divided by [(1+r)^n minus 1], where P is the principal (loan amount), r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This formula ensures each payment covers the current month's interest plus a portion of the principal.
How to use this tool
Enter the loan amount, annual interest rate, and loan term (in years or months). The calculator instantly shows your monthly payment, total amount repaid, and total interest cost. The amortization table below breaks down every payment, showing the principal and interest components and the remaining balance.
Understanding total interest
Total interest is the difference between what you repay and what you originally borrowed. On long-term loans at high rates, total interest can exceed the original principal. For example, a $300,000 mortgage at 7% over 30 years costs approximately $418,000 in interest — more than the house price itself. The amortization table reveals how this accumulates over time.
Tips for saving on interest
Making extra principal payments — even small ones — can dramatically reduce total interest and shorten the loan term. An extra $100 per month on a 30-year mortgage can cut 5–7 years off the loan. Refinancing to a lower interest rate is another effective strategy when rates drop. Shorter loan terms (15 vs. 30 years) have higher monthly payments but save tens of thousands in interest.
Frequently asked questions
What is the difference between fixed and variable rate loans?
A fixed-rate loan has the same interest rate for the entire term — your monthly payment never changes. A variable-rate loan has an interest rate that adjusts periodically based on market conditions, so your payment can increase or decrease. Fixed rates offer predictability; variable rates may start lower but carry the risk of future increases.
Should I choose a shorter or longer loan term?
Shorter terms have higher monthly payments but much lower total interest costs. A 15-year mortgage at 6% costs roughly half the total interest of a 30-year mortgage at the same rate. Choose the shortest term you can comfortably afford, ensuring the payments leave enough room in your budget for savings and emergencies.